How to Buy Gold: Buying Gold Bullion Coins and Bars
You hear it all the time: Buy Gold. But why? What are the advantages to buying gold? Many consumers buy gold as a potential hedge against inflation and even economic downturn. In fact, if you bought gold in 2007, before the great financial collapse, you would have doubled your money five years later. But how to buy gold? Whether you’re buying gold bullion coins or buying gold bullion bars, or other precious metal products, Rosland Capital has the experience and expertise to show you how.
Buying Gold: Securities, Funds, and Notes
To begin with, you could buy what is known as “virtual” gold. This includes buying gold securities, buying gold funds, and buying gold notes. Virtual gold is traded on various stock exchanges and it’s important to note that besides added taxes and fees, these products come with potential additional risks due to possible market fluctuation.
Going straight to the source, you could buy into a gold mine itself. However, be aware that the price of shares in a gold mine does not necessarily parallel the price of gold itself.
Buying Physical Gold
If you find the process of buying gold products in the virtual market complicated, then you can simplify it by buying physical gold itself. While buying gold coins can be the easiest way to go, you can also buy gold bars. Let’s break down the different options.
Buying Gold Coins
Gold coins are often seen as a potential hedge against inflation and even severe economic downturn. In the great financial crash of 2008, not only was gold a safe bet, it turned out to be an extremely profitable one as well. But why buy gold coins as opposed to buying gold bars?
For one thing, buying gold coins is the easiest way to purchase gold. Gold coins are minted by weight and guarantee purity. As well, gold coins are much easier to liquidate than say a large bar. While premiums for coins are higher than those for bars, ease of liquidity is a major consideration when buying gold coins.
- Start with what you’re most familiar with. The American Eagle and Canadian Maple Leaf gold bullion coins are a great example of easy-to-purchase, North American gold coins. Purity is guaranteed by the U.S. and Canadian Mints and these can even be part of a Gold IRA.
- Besides the American Eagle and Canadian Maple Leaf, Rosland Capital offers a wide array of North American, and overseas bullion coins, as well as limited edition gold coins including the PGA TOUR PLAYERS Championship, the Presidents Cup, and the British Museum Coin Collections.
- Choose a reputable dealer, like Rosland Capital. You’ll have your own criteria for choosing, but you may well want to consider a dealer like Rosland, that buys back the coins they sell you at their then current market value as determined by Rosland, without charging extra fees.
- Choose your denomination carefully. For example, the American Eagle gold coin is issued in four denominations: 1 ounce, 1/2 ounce, 1/4 ounce, and 1/10 ounce. If you’re an experienced gold buyer, and you know what you want, you might go with the 1-ounce gold coin as the fractional varieties carry with them higher premiums. If you’re a new gold buyer, you may prefer starting with 1/4 ounce coins as each item does not require as large of an upfront expenditure. It also gives you more flexibility when you want to sell.
- What about rare gold coins? The coins for sale are often graded by independent, professional companies like PCGS and NGC, who seal them in protective containers. Grading involves assessing the coin’s physical condition, and the price reflects who wants to buy it and how rare it is. Buying rare gold coins can be a source of fascination in itself.
- Understand what you’re buying. Be sure and find out ahead of time how much the gold coins cost from your dealer, and what shipping charges may apply. Rosland Capital can help to educate gold buyers on the price of gold and potential benefits of strengthening assets with gold and other precious metals.
Buying Gold Bars
Why buy gold bars? Gold bars can suit consumers who buy in higher quantities. Bars range from as small as fractions of an ounce to as large as 400 ounces. Why buy gold bars in large sizes? Typically, the larger the size of the gold bar, the smaller the amount of the premium.
Be aware, even though you may save money on premiums when buying larger gold bars, trading them on the secondary markets can prove more difficult.
The essential questions when buying gold bars include:
- 1. Why Buy Physical Gold in the First Place? While gold is no longer an official currency, it is still regarded as one of the soundest purchases. And why not buy the type of gold you can hold right in your hand? Most assets cannot be physically touched like gold. And unlike other purchases, gold can be turned quickly and easily into cash.
- 2. What are the Advantages to Buying Gold Bars? If you’re looking to increase your holdings in gold substantially, then buying gold bars is the less expensive way to go. Premiums for bars are lower than coins because of production costs. Gold bars can also be easier to store.
- 3. What Style of Gold Bar Should You Choose? Besides the size of your gold bar, there are different styles as well. Minted gold bars are often packaged in sealed assay cards with details about the bar’s authenticity. They also serve to protect the bar itself.
Cast gold bars are just as valuable as their minted counterparts, but are less artistic. Cast gold bars are popular with some consumers for the very reason that they are simple in design and fit the standard mental image of a gold bar.
Rosland Capital offers a wide array of gold bars including Credit Suisse and Produits Artistiques de Métaux Précieux (P.A.M.P.). Gold has been one of the most stable purchases in the world. Gold has not only stood the test of time, it has historically proven to be a valuable purchase in both good and bad economic times. Buying physical gold means you’ve got something you can hold in your hand. Feel your purchase. Rosland Capital offers the experience and expertise you need when making that decision to purchase physical gold.
Now That You’ve Made Your Decision, How to Go About Buying Physical Gold
The first thing you want to be sure of is that you are getting the real thing. Buying physical gold is different than buying virtual gold. When you buy gold futures, a gold ETF or a gold share, you are in essence buying a gold proxy or derivative. When you buy physical gold, you are getting the real thing.
The price of gold fluctuates. Check out the price of gold at the time you are considering buying your physical gold, then compare it to historical prices. If you are still not comfortable whether or not this is a good time to buy gold, seek professional advice.
Make sure you’re getting a fair price. Once you have familiarized yourself with the market and have a good idea for the going price of gold, make sure that the dealer you’re buying your physical gold from is giving you a fair price.
Make sure you are buying from a reputable dealer. Do your due diligence. Make sure the dealer you are buying from is a reputable one. There are websites with reviews letting you know how trustworthy a dealer may be, like the Business Consumer Alliance or the Better Business Bureau.
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